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President Biden Announces Next Step in Reclassification of Cannabis

by Omar Figueroa and Lauren Mendelsohn

May 16, 2024

Photo of President Biden and underneath text saying "This is Monumental"

Screenshot of President Biden’s announcement on social media platform Twitter/X.

 

On May 16, 2024, the Biden Administration announced that the United States Department of Justice is taking the next step in the reclassification of cannabis from a Schedule I controlled substance to a Schedule III controlled substance — which would be the most significant change to U.S. drug policies since the adoption of the Controlled Substances Act (CSA) in 1970.

Specifically, the Department of Justice has submitted a Notice of Proposed Rulemaking (NPRM) to the Office of the Federal Register. The Notice of Proposed Rulemaking, which was signed by Attorney General Merrick Garland himself, can be downloaded here and read below.

Scheduling NPRM 508

 

Notably, President Joe Biden made an announcement on social media platform Twitter/X, underscoring the historical significance.  “This is monumental,” Biden said in a video released by the White House on social media platform Twitter/X. “Today, my administration took a major step to reclassify marijuana from a Schedule I to a Schedule III drug. It’s an important move towards reversing longstanding inequities.”

It is anticipated that the publication of the Notice of Proposed Rulemaking in the Federal Register will kick off a 60-day public comment period. The DEA Administrator may assign an Administrative Law Judge to review the evidence and make a final scheduling recommendation.

If an Administrative Law Judge were assigned to review the evidence and make a final scheduling recommendation , it would be eerily reminiscent of the time approximately 35 years ago when the Drug Enforcement Administration’s own Chief Administrative Law Judge Francis Young wrote a landmark decision explaining why cannabis should not be classified as a Schedule I controlled substance:

Marijuana, in its natural form, is one of the safest therapeutically active substances known to man. By any measure of rational analysis marijuana can be safely used within a supervised routine of medical care. It would be unreasonable, arbitrary and capricious for DEA to continue to stand between those sufferers and the benefits of this substance in light of the evidence in this record.

Chief Administrative Law Judge Young’s scheduling recommendation was ignored by the DEA Administrator at the time, as detailed in the NORML blog.

After the public comment period and possible Administrative Law Judge recommendation,  the Department of Justice would then issue the final determination and it would be published it in the Federal Register, at which point cannabis would no longer be considered a Schedule I controlled substance.

One important consequence of cannabis no longer being classified as a Schedule I controlled substance is that cannabis businesses will see immediate easing of onerous federal tax burdens once cannabis is officially classified as a Schedule III controlled substance, as we detailed in our blog post entitled Tax Consequences of Federal Rescheduling for Cannabis Businesses which you can read here.

The Office of Legal counsel has prepared a memorandum regarding Questions Related to the Potential Rescheduling Marijuana, which is available here.

Stay tuned for more on this monumental development in U.S. drug policy.

 

This information is intended as a public educational service and is not intended, nor should be construed, as legal advice. For further questions about the rescheduling of cannabis from a Schedule I controlled substance to a Schedule III controlled substance as well as detailed guidance tailored to your specific circumstances, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation. 

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